DELL

Dell Technologies

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Computer Hardware

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/04/26

Business Summary

Capital One Financial operates a credit-driven financial services model centered on lending and interest income generation. It earns cash primarily through the spread between borrowing costs and the interest charged on credit products, supplemented by fee income embedded in its services. Scale, underwriting data, and risk analytics form the backbone of its competitive position, allowing it to price risk across large consumer portfolios. Its moat is built on brand recognition, customer data depth, and the operational infrastructure required to manage large-scale credit issuance and servicing profitably.

VALUATION

P/E

20.5

Market Cap ($M USD)

$114,814

Forward P/E

12.2

PEG

1.3

PRICE TO SALES

1.1

PRICE TO BOOK

-

EV / EBITDA

11.4

5-Year Average P/E

DIVIDEND

Yield

1.20%

Annual Payout

$2.52

Payout Ratio

23.90%

Consecutive Years of Dividend Growth

3

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$8.79

Next Year EPS Growth Estimate

$14.54

Next Year Revenue Growth Estimate

6.80%

Return on Equity (ROE)

-240.30%

Operating Margin

7.40%

Debt-to-Equity

-

Piotroski F-Score

7

Altman Z-Score

2

Return on Invested Capital (ROIC)

25.80%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 57.5x trailing earnings, COF screens optically expensive, yet the 7.9 forward P/E and 0.8 forward PEG scream compression and earnings normalization ahead. The market is pricing in a sharp earnings recovery despite a weak 5.60% ROE and razor-thin 1.90% operating margin, which hardly justify a premium multiple. The real red flag is the Altman Z-Score of 0.5, a distress-level reading that overshadows the attractive forward multiple and suggests balance sheet fragility the market may be underestimating. This is a classic case of a stock that looks cheap on forward earnings but carries material financial risk beneath the surface.

AI Exposure / Tech Reliance

As a Credit Services firm within Financial Services, COF operates in a data-heavy, underwriting-driven environment where AI can materially improve risk modeling and credit scoring. Modern analytics can enhance margin efficiency beyond the current 1.90% operating margin if executed properly. However, technology is table stakes in this industry, not a differentiator, meaning AI adoption is more defensive than transformative.

The Bull Case

A value or GARP investor will focus on the 7.9 forward P/E and 0.8 PEG Forward, both signaling that expected growth is underpriced relative to earnings expansion. The 11.00% ROIC is respectable and materially stronger than the 5.60% ROE, implying capital deployment still generates acceptable returns even if equity efficiency is muted. A Price/Book of 1.1 suggests the market is valuing the firm only modestly above its net assets, offering downside support for deep value buyers. While the Piotroski F-Score of 4 is middling, it is not catastrophic, and combined with a $120,031M market cap and 2x sales multiple, the setup resembles a cyclical financial poised for operating leverage if margins normalize.

The Bear Case

The bear case is blunt: a 0.5 Altman Z-Score signals potential financial distress, and a 45.00% Debt/Equity ratio in a tightening credit environment amplifies that risk. Operating margin at 1.90% leaves virtually no room for credit deterioration or funding cost spikes. Short interest at 14.90% of float indicates a meaningful cohort betting against the name, and the trailing P/E of 57.5 shows how distorted current earnings are. Add in the weak 5.60% ROE and a Piotroski F-Score of 4, and this looks less like a stable compounder and more like a balance sheet-sensitive lender walking a tightrope.

Market Sentiment & Smart Money

Short Interest %

9.00%

Analyst Consensus

1.8

Average Analyst Price Target

$175.27

Institutional Ownership %

85.30%

1-Year Beta

1.71

Insider Buying % (6 Mo)

7.70%%

Distance to 52-Week High

93.70%%

Distance to 52-Week Low

228.10%%